Factors Setting The Tone For Intel's (INTC) Q4 Earnings

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Intel (INTC - Free Report) is slated to release fourth-quarter 2020 results on Jan 21, 2021.

In the third-quarter earnings conference, management anticipated PC-centric business to decline in low-single digits on a year-over-year basis, while data-centric business is projected to slump approximately 25% year over year in the fourth quarter.

Intel also expected momentum in consumer notebook PCs to continue in the fourth quarter, backed by remote working and online trends. Also, increased supply might contribute to results.

Per the preliminary results, released on Jan 13, the company expects fourth-quarter revenues and earnings per share to exceed its previous guidance provided on Oct 22, 2020.

Markedly, on Jan 13, Intel announced that it has appointed Pat Gelsinger as the company’s new CEO. Current CEO Bob Swan will be stepping down from his role on Feb 15, 2021. Additionally, the chipmaker intends to provide update on its robust progress in its 7 nanometer (nm) process technology during its fourth-quarter earnings conference.

Key Q4 Estimates

For the fourth-quarter, Intel previously anticipated non-GAAP revenues of $17.4 billion. The Zacks Consensus Estimate for revenues is pegged at $17.44 billion, indicating a decline of 13.7% from the year-ago quarter.

Intel Corporation Price and EPS Surprise

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Intel Corporation Price and EPS Surprise

Intel Corporation price-eps-surprise | Intel Corporation Quote

For the fourth-quarter, Intel had projected non-GAAP earnings of $1.10 per share. The Zacks Consensus Estimate for earnings is pegged at $1.10, stable in the past 30 days. The figure suggests fall of 27.6% from the prior year reported figure.

Notably, the company has beat earnings estimate in each of the trailing four quarters, the average surprise being 11.9%.

Factors to Note

Sluggish data center demand across enterprise and government end-markets due to coronavirus crisis led weakness in data-centric businesses is likely to have affected Intel’s fourth-quarter performance.

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